According to our sources who attended, author and NSSTA legal committee member stated that "NSSTA has softened its view of factoring" during his presentation at the Society of Settlement Planners meeting in Washington DC yesterday. I wonder what that means. I'll bet a whole slew of trial lawyers do as well.
Hindert's outrageous statement, in the same breath as reporting that factoring discount rates have increased from an average of 10% to an average of 20%, if proven true, would be both a credibility destroyer and potential self destruct button for the NSSTA.
The NSSTA established a Branding Commitee in June 2008 to examine ways to increase the structured settlement brand in a space dominated by the once bloated advertising budget of JG Wentworth and others and to counter blatant false advertising.
The settlement industry credibility on factoring is unfortunately, already on tenterhooks given that
- Patrick Hindert reported on October 26, 2008 in NASP Annual Meeting-3, that prominent settlement planners Michael Upchurch and Jack L. Meligan said that "the "bad" part of factoring results from non-professional ("cash now") advertisements promoted by many factoring companies. Such advertisements (characterized as "Jerry Springer-type" commercials) are unprofessional and damage settlement planners' relationships with plaintiff attorneys and reduce structured settlement sales. Meligan and Upchurch allegedly said that not only do plaintiff attorneys dislike "cash now" advertisements, they are also less likely to recommend structured settlements if they believe their clients will eventually sell their payment rights. They recognize and disapprove of the temptations created by such advertising. Meligan and Upchurch both predicted continued negativity toward the secondary market from the primary market so long as factoring companies continue such advertising.
95% of the industry not participating in a grass roots structured settlement transparency initiative. NSSTA disclaimed the initiative by memorandum to its membership
Little to no industry disclosure of factoring activities by industry members.
An industry member advertised that it was purchasing structured settlements in 2006. Download Forge Pay Per Click-Structured Annuity Buyer 9202006 and Download Forge Pay Per Click-Google-Structured Annuity Buyer 9212006 A principal of that firm is membership chairman of NSSTA.
The domain name of a factoring company was registered on the down low by an NSSTA member, until exposed by this blog.
NSSTA and a number of its members ostensibly attack the manufacturer of a viable structured settlement alternative, a product whose embodiment holds no need or ability to factor (and it's selling like hot cakes).
- Rumors persist that a member of the industry has ownership interest in a factoring company.
Is there a cover up some where? I'm not making this stuff up!